Center for Supply Chain Management: November 2014

Volume 12 Number 11 November 2014

Center for Supply Chain Management John Cook School of Business Saint Louis University

NEWSLETTER

INSIDE THIS ISSUE Distinguished Speaker Event November Professional Development Course Schedule Save The Dates Center News - Food for Thought Center Picture Gallery Center Organization and Board Members Center for Supply Chain Office

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The Center for Supply Chain Management welcomes Dr. Chris Caplice of MIT to the 2014 Annual Distinguished Guest Speaker Series

The John Cook School of Business Center for Supply Chain Management will welcome Dr. Chris Caplice, the executive director, Center for Transportation and Logistics at Massachusetts Institute of Technology (MIT) as a keynote speaker for the 2014 Annual Distinguished Guest Speaker Series on Thursday, November 20. The event will be held on campus at Saint Louis University’s St. Francis Xavier (College) Church ballroom at 11:30 a.m.

His presentation title is, “Disrupting the Dominant Design of Distribution” and will discuss how supply chains and distribution networks in the United States (and elsewhere) have settled into a dominant design where finished products are manufactured overseas, imported into the United States through very few concentrated points of entry (ports), and distributed through a network of tiered distribution centers. This has resulted in very concentrated flows from a very few number of ports. This talk discusses the dominant design for distribution in the United States and introduces four emerging and growing macro trends that could potentially have significant impacts on this dominant design: Densification of Product, Diversification of Sales Channels, Decentralization of Production and Digitization of Products.

As the executive director of the Center for Transportation and Logistics, he is responsible for the planning and management of the research, education and corporate outreach programs including the Supply Chain Exchange and the Master of Engineering in Logistics (MLOG) graduate program. He is also the founder of the MIT FreightLab, a research initiative that focuses on improving the way freight transportation is designed, procured and managed. His primary research is in the design, procurement and management of freight transportation systems including combinatorial auctions, robust planning and performance metrics. Dr. Caplice has presented and published in numerous business and academic conferences and journals.

Prior to joining MIT, Dr. Caplice held senior management positions in supply chain consulting, product development and professional services at several companies 2

including Logistics.com, SABRE and PTCG. He is also the Chief Scientist for Chainalytics, the leading analytical supply chain consulting firm where he pioneered and leads the Chainalytics Model Based Benchmarking Consortium (MBBC). Dr. Caplice served five years in the Army Corps of Engineers, achieving the rank of Captain. His writing has appeared in the Journal of Business Logistics, the International Journal of Logistics Management and Transportation Research. He received a Ph.D. from MIT in 1996 in Transportation and Logistics Systems, a Master of Science in Civil Engineering from the University of Texas at Austin and a Bachelor of Science in Civil Engineering from the Virginia Military Institute.

For more information and to register for the event, contact the Center for Supply Chain Management: cscms@slu.edu or 314-­‐977-­‐3617. To register online, click here.

2015 Spring Semester Registration is Open

You can access the full range of programs and register at enter at the Center for Supply Chain Management Studies – A Center of Distinction. Center discounts for members range from 10-­‐30 percent based membership level. To register, click here.

November 2014 Professional Development Program Schedule

Subject: Risk Management (Distance Learning) Date: TBD Instructor: Mr. Dana Hullinger, Director, Supply Chain Strategy & Early Supplier Involvement, Supplier Management, The Boeing Company, Integrated Defense Systems Brief Description: This on-­‐line program covers the critical aspects of risk managementand how to mitigate risk. Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events[1] or to maximize the realization of opportunities.

Subject: Managing Transportation and Warehousing Date: November 20-­‐21, 2014 Instructor: Tom Goldsby, Ph.D. Professor of Supply Chain Management at Ohio State University

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Brief Description: Transportation is the movement of and goods from one location to another.

Modes of transport include air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles and operations.

Cost: $1,200 Place: Room CK230 Cook School of Business, Saint Louis University

Subject: The 2014 Annual Distinguished Guest Speaker Series Co-­‐sponsor: Scott Air Force/St. Louis chapter of National Defense Transportation Association Date: November 20, 2014 Speaker: Chris Caplice, Ph.D. Executive Director of the Center for Transportation and Logistics at MIT. Topic: Disrupting the Dominant Design of Distribution Place: Lower Level Ballroom at Xavier College Church (Grand and Lindell Blvd)

Save-­‐the-­‐Dates

December 12, 2014: ISCM Team Research Presentations December 12, 2014: Fall 2014 ISCM Class Graduation Ceremony

December 11, 2014

Advisory Board Meetings

Center News -­‐ Food for Thought

Supply chain analytics tops executives' priority list for technology investment

Most respondents to an IBM survey said they plan to implement advanced analytics and modeling in the next two to five years. Visibility was second on their priority list.

Chief supply chain officers plan to invest in analytics, business intelligence, and other software tools to bring more visibility to their supply chains, according to "Orchestrating a customer-­‐activated supply chain," a report issued by the IBM Institute for Business Value. IBM canvassed 201 chief supply chain officers from 16 countries for the research.

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The study found that 92 percent of supply chain executives said they expect to have implemented advanced analytics in the next two to five years, and 80 percent said the same for modeling to optimize flows. (Those figures include a small number of respondents who already have those capabilities in place.) In addition, 62 percent said that in the next three to five years they plan to invest in software and tools that will help them achieve supply chain visibility.

The report also noted that 96 percent of the supply chain executives surveyed expect to have achieved a higher level of collaborative planning and execution with their partners within the next two to five years. (Forty-­‐seven percent of respondents report that they have already reached that goal.) In that regard, 64 percent of survey respondents plan heavier use of software for collaborative intelligence during that period.

The research found that supply chain organizations are still struggling to gain a big-­‐picture view of their operations. When IBM conducted a similar study in 2010, 70 percent of chief supply chain officers who participated predicted that their supply chain flows would be optimized within five years. But in the 2014 study, only 9 percent of respondents said they had accomplished that goal.

The study covers considerably more ground on a host of topics related to strategy and planning. The full report is available here.

Investment areas for supply chain chiefs

Cost reduction/cost containment 75 percent Supply chain visibility

62 percent Sales and operations planning 56 percent Business intelligence/analytics 54 percent Inventory optimization

54 percent

Source: IBM Institute for Business Value, "Orchestrating a customer-­‐activated supply chain" (2014)

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Picture Gallery

Strategic Sourcing 6

Reducing Variability in the Supply Chain 7

Center Organizations & Board Members AEP River Operations Ameren Services

Anheuser-­‐Busch/InBev Asynchrony

The Boeing Company

Cassidy Turley Company Cass Information Systems Emerson Company Energizer Hodgson Mill Mallinckrodt Pharmaceuticals Mesa Logistics Monsanto Company Nordyne, Inc. Novus International, Inc. Nestle Purina Pet Care Peabody Energy ROi

Saint Louis University Underwriter Laboratories UniGroup, Inc. World Wide Technology Ex-­‐Officio

Mr. George Piccioni Mr. Dennis Weisenborn & Mr. Mark Brandt Mr. Gary Welker Mr. Bob Elfanbaum Mr. David Thole, Mr. Steve Georgevitch, & Ms. Joann Franke Mr. Ed Lampitt Mr. Frank Cirimele Mr. Fred Perreand & Mr. Joe Ackerman Mr. Jeroen Kanters Mr. Ray Martin Mr. George Morrison Mr. Frank Fischer Mr. Mario Morhy Mr. Bob Bielecki Mr. Kevin Mowery Mr. Marty Tendler & Mr. Pete Spanos Mr. Carlton Adams Ms. JoAnne Levy Dr. John Hamilton Mr. August (Gus) Schaefer Mr. Tom Duwel Mr. Kurt Grimminger Dr. Ik-­‐Whan Kwon

Honorary Members Mr. Bob Drury, Mr. Gerald Hayden, Mr. Jim Kavanaugh, Mr. Tom Olson

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Center for Supply Chain Management Office Scott Safranski, Ph.D., Interim Dean Ik-­‐Whan G. Kwon, Ph.D., Director John W. Hamilton, Ph.D., Associate Director Mrs. Dawn DeLaria, Administrative Assistant

Center for Supply Chain Management John Cook School of Business Saint Louis University 3674 Lindell Blvd. DS 458 Saint Louis, Mo 63108 http://cscms.slu.edu Phone: (314) 977-3617 Fax: (314) 977-2068 Email: cscms@slu.edu

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